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It's a fresh start. If you're looking at debts you can't pay back or you can't even make the minimum payments, bankruptcy stops the actions of all of your creditors in their tracks, bankrupticies, lawsuits, etc., then either restructures your debt so that it's manageable, (there's a formula for it) or if you qualify for Chapter 7, your debt is simply erased.
With credit card debt of $5K, you're better off working something out with your credit card company to get that paid off. Car loan? Sell the car or let the car go back. Better than bankruptcy in most cases.
I would only recommend bankruptcy if your debt situation is just hopeless in the long term. I'd also check out the Dave Ramsey route--a bit simplistic, but it works for a lot of folks.
As for student loans, they're not bankruptable absent pretty extreme circumstances.
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SN -SINCE 1869-
"EXCELLING WITH HONOR"
S N E T T
Mu Tau 5, Central Oklahoma
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